Forget Gold, China Will Double Its Uranium Hoarding This Year

ChartUranium (UX, Nymex, in US$)

China may have pledged to continue investing reserves in U.S dollars lately, dissing gold as an asset in the process, but that’s not stopping them from doubling their investment in another valuable commodity — uranium.China is expected to double the amount of uranium it stockpiles this year, to 5,000 metric tons, says Thomas Neff of the Massachusetts Institute of Technology.

The nation is doing this as part of its push to develop nuclear power on a massive scale, and state-owned companies have already been scouting uranium investments abroad.

Combined with the fact that America is considering new nuclear power plants as well, Uranium bulls have reason to be more excited these days. Uranium prices are well below the levels of last year, as shown in the chart above, thus it’s not like bullish sentiment has already been played out either.

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